John Palmer and Henry Morrison formed the limited partnership of Palmer & Morrison for the management of the Huntington Hotel and filed an appropriate certificate in compliance with the limited partnership statute. The limited partnership agreement provided that Palmer would contribute $400,000 and be a general partner and that Morrison would contribute $300,000 and be a limited partner. Palmer was to manage the dining and cocktail rooms, and Morrison was to manage the rest of the hotel. Nanette, a popular French singer, who knew nothing of the limited partnership’s affairs, appeared for four weeks in the Blue Room at the hotel and was not paid her fee of $8,000. Subsequently, the limited partnership became insolvent. Nanette sued Palmer and Morrison for $8,000. a. For how much, if anything, are Palmer and Morrison liable? b. If Palmer and Morrison had formed a limited liability limited partnership, for how much, if anything, would Palmer and Morrison be liable? c. If Palmer and Morrison had formed a limited liability company with each as members, for how much, if anything, would Palmer and Morrison be liable? d. If Palmer and Morrison had formed a limited liability partnership with each as general partners, for how much, if anything, would Palmer and Morrison be liable?
John Palmer and Henry Morrison formed the limited
The limited partnership agreement provided that Palmer would contribute $400,000 and be a general partner and that Morrison would contribute $300,000 and be a limited partner. Palmer was to manage the dining and cocktail rooms, and Morrison was to manage the rest of the hotel. Nanette, a popular French singer, who knew nothing of the limited partnership’s affairs, appeared for four weeks in the Blue Room at the hotel and was not paid her fee of $8,000. Subsequently, the limited partnership became insolvent. Nanette sued Palmer and Morrison for $8,000.
a. For how much, if anything, are Palmer and Morrison liable?
b. If Palmer and Morrison had formed a limited liability limited partnership, for how much, if anything, would Palmer and Morrison be liable?
c. If Palmer and Morrison had formed a limited liability company with each as members, for how much, if anything, would Palmer and Morrison be liable?
d. If Palmer and Morrison had formed a limited liability partnership with each as general partners, for how much, if anything, would Palmer and Morrison be liable?
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d. If Palmer and Morrison had formed a limited liability
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